Mirova's flagship fund, the Mirova Global Sustainable Equity Fund, outperformed its benchmark, the MSCI World Index, by 6% in 2023.

In addition to outperforming its benchmark financially, the fund also outperformed its sustainability benchmark, the MSCI World Net Dividends Reinvested on those factors, with 58.3% of the portfolio exposed to a moderate or high positive impact on the UN Sustainable Development Goals (SDGs) compared with 22.9% for the benchmark.

That analysis is based on an impact and environmental, social and governance (ESG) assessment framework Mirova enhanced last year. It is based on qualitative assessment of each asset and placed into one of five categories, for their relationship with the SDGs, on a sliding scale from negative impact at the bottom and high positive impact at the top, with moderate positive impact being the second highest score.

Climate is where the fund has the largest allocation with 29% of it contributing to climate stability, primarily through green energy and energy efficiency. While 63% of the portfolio has validated science-based targets or has committed to do so to be in line with the Paris Agreement in limiting the average global temperature increase to less than 2°C. Across all its portfolios Mirova has set a 2°C target.

Mirova Global Sustainable Equity Fund has $5.2 billion in assets under management and forms part of a $10.6 billion strategy.

Elsewhere, other sustainable Mirova funds include the Mirova Biodiversity Equity Fund, launched last year, to invest in companies and projects that actively contribute to the conservation and restoration of biodiversity. It aims to support companies that provide solutions to biodiversity loss and change of practices in listed companies and also contribute to greater resilience against climate change.

Also last year, the Mirova Gigaton Fund achieved a first close at $117 million. It is a blended finance debt fund targeting the clean energy transition in emerging markets, primarily Africa and Asia Pacific.